Why place a trade when IVRank is under 50%?

Why place a trade when IVRank is under 50%?

Written by Eli Grelecki Updated over a week ago

We have proven studies stating that IV always overstates actual volatility in the long-term, which means that we always have an edge if we are options sellers. With that being said, during periods of low IV we tend to keep our position sizing smaller and increase our position size when IV is higher.